Silver prices fell by ₹4,000 to ₹1.98 lakh per kilogram in Delhi, hitting a 10-month low amid a stronger US dollar. While silver faced a sharp correction, gold prices remained stable as investors waited for the US Federal Reserve's policy decision. This divergence highlights shifting sentiment in the global precious metals market.
Silver prices in the Delhi market witnessed a sharp correction on Wednesday, falling by ₹4,000 to settle at ₹1.98 lakh per kilogram. This decline is significant because it marks the first time in ten months that silver has traded below the psychological support level of ₹2 lakh per kilogram. The drop in local prices follows global trends where silver has faced persistent selling pressure.
While silver struggled, gold prices showed relative resilience, holding on to recent gains. Investors in the bullion market are maintaining a cautious approach as they await clarity from the US Federal Reserve’s upcoming policy announcement. Gold is often viewed as a store of value, and traders frequently pause activity ahead of major central bank decisions that could influence interest rates and currency valuations.
The primary factor currently weighing on precious metals is the strength of the US dollar. A stronger dollar makes commodities, which are priced in dollars, more expensive for buyers using other currencies. This currency pressure has hit silver harder than gold. One reason for this is silver’s dual role as both an investment asset and an industrial metal. When global economic sentiment turns defensive, industrial demand for metals often faces quicker adjustments compared to the demand for gold, which is primarily held as a financial asset.
For Indian investors, tracking these price levels is useful, as local rates for precious metals are closely linked to international market trends and currency fluctuations. The movement of the rupee against the dollar also directly impacts the final price of gold and silver in the domestic market. The next major trigger for price direction will likely be the official commentary from the US Federal Reserve regarding its interest rate policies. Investors may monitor whether the US central bank signals a continuation of the current rate environment or provides hints about future changes, as this will likely influence the strength of the dollar and the subsequent pricing of precious metals globally.